A-Z Jargon Buster for Real Estate

Here you will be informed of all the confusing jargon you may hear when having a conversation about Real Estate. If you are going to be involved with this sector, whether you're moving house, renting, or joining a job in the sector, we are here to break it down for you.

A

Agent - Generally refers to the individual that acts on behalf of the landlord involving in any services related to estate agency.

Assets - These are items of value that are owned by an individual. Those that can be converted into cash quickly are considered as 'liquid assets'. These include bank accounts, bonds, stock. Other assets include real estate, property and debts owed to the individual.

Auction - A sale of goods or property where potential buyers bid against on another for individual items.

B

Broker - This is anyone who acts as an agent, bringing two parties together for any type of transaction and receives a fee for doing so.

Bungalow -  A low property that has only one storey.

Capital Appreciation - The increase in value of a property or asset over a period of time.

Chain - A number of property transactions where exchange of contracts must take place simultaneously.This could be due to the fact that everyone needs a home to move in to.

Common areas -  This refers to any room or area that is shared by more than one resident. These may include gardens, hallways and parking spaces.

Conveyancing - This is the legal process of transferring ownership from vendor to purchaser.

Credit Check - This is the procedure where the credit history of an applicant is checked, usually conducted by one of the large dedicated credit rating agencies. The check will reveal history of credit card repayments, outstanding debts, arrears and County Court Judgments.

Curb Appeal - This is a measurement of how attractive the exterior of a property from standing on the street. Features that boost curb appeal are freshly cut lawn with planted flowers, good paint work and nice lighting and mailboxes.

D

Deposit - A sum of money that is paid in advance to secure the property as a part of the full property.

Depreciation - The decline in value of property, typically due to the changing market conditions and the general upkeep of the property.

Detached - A property which stands by itself, not attached to any other property.

E

Edwardian - A property built in the years between 1901 and 1910.

Elizabethan - A property built in the years between 1560 and 1603.

F

Fixtures and Fittings - Non-removable pieces in the property. These are the items that are fixed permanently in the property such as the doors, baths, radiators and the kitchen surfaces.

G

Georgian - A property built in the years between 1714 and 1800.

Guarantor - Somebody who guarantees an obligation of another.

H

Habitable Rooms - Any room that is fit to live in. These are bedrooms and living rooms. They do not include kitchens, bathrooms and WCs.

I

Interest -  The cost that you pay to borrow money from somebody. Interest is commonly a percentage of the amount borrowed and this will be added onto the amount you are paying them back.

J

Joint Mortgage - A mortgage where there is more than one person named responsible for the mortgage.

L

Landlord - This is somebody who buys a property, a building or land to let it out to people who will therefore be known as the tenant.

Letting - A property that is up for let.

Listed Building - A building or structure that holds special architectural or historic interest.

M

Maisonette - This means a property that is a self-contained apartment within a larger house. It has it's own entrance from the outside.

Mezzanine - An intermediate floor that doesn't fill up the whole floor area.

Mortgage - This is a loan for purpose of buying a property. The property is the collateral. The loan is paid off in monthly installments, however it this can't be done, the property will be taken and sold to pay off the loan.

N

Negative Equity - When the value of the property is lower than the outstanding sum of the mortgage.

Notice Period - This refers to the amount of time that the landlord must give the tenant and vice versa.

O

Offer - A bid that is made by  a potential buyer that is not legally binding.

Online Agent - This is a website that acts on behalf of another to do them business. For example, a landlord would act an online agent to post their property online and get tenants for them.

P

Premium Lease - The sum of money that is paid up front as rental payments for a property.

R

References - Where the landlord will check the suitability of the tenant to be able to pay the rent and their track record in paying for rent. This will include contacting previous landlords and their employers.

Repossession - When loans are in default the mortgage lender can take the property and sell it so they can make enough money to sell the debt.

S

Semi-Detached - A house that is attached to only one other house.

Sole Agent - A single agent entrusted with a sale or a let.

Solicitor - A legal expert which handles all documentation for the sale or purchase of a property.

Stamp Duty  - The tax paid by buyers of property with a value in excess of£120,000 between 1% and 4% depending  on the value of the property 

Studio Flat - A flat which is one main room or open plan living area incorporating cooking and sleeping facilities and a separate bathroom or shower room.

Surveyor - A professionally qualified expert that carries out the surveys.

T

Tenant - The tenant is the person who is paying rent to reside in a property. They will pay the landlord generally on a monthly basis to reside in that property.

Tenure - Whether a property is freehold or leasehold.

Termination - Making a mutual agreement that it is the end of the lease,  by the passing of time, or by the exercise of a right of one of the parties.

Terrace - A row of houses built together in the same style separated only by a wall

Timeshare - Where two or more different parties own the right to use a property on a time-sharing basis. This is most likely a holiday home.

Tudor - A property built in the years between 1485 and 1550.

U

Under Offer - The status of a property when a seller has accepted an offer from a purchaser prior to exchange of contracts.

Utilities - Generally refers to electricity, gas and water and may be referred to as services that under most circumstances tenant is responsible for paying all the utility services.

V

Victorian - A property built in the years between 1837 and 1901.

Y

Yield - Income from a property calculated as a percentage of its value.